Options Traders Craving Volatility Look Past Fed to Jobs Data

Even as the Federal Reserve meeting and $5 trillion quarterly triple-witching options expiry loom over the equity market, volatility traders are also circling the upcoming jobs data on their calendars.

The Fed is expected to cut interest rates on Wednesday and quarterly equity options on stocks, exchange-traded funds and indexes will expire Friday in an event that some say clears out dealer positions. While those ordinarily look quite enticing for traders betting on bigger market swings, this time they aren’t expecting volatility to make an immediate return.

With a 25 basis-point rate cut fully priced in, investors will be watching ...